“Clunkers” program revived?

July 31, 2009 at 2:51 pm

The so-called “Cash for Clunkers” program, aimed at stimulating the auto industry by offering consumers rebates for turning in old cars for more fuel-efficient models, went through its $1 billion in a week. The House then voted to add $2 billion more to keep the program going. School of Management Professor Shuba Srinivasan, who has researched strategic marketing programs in the auto industry, says it’s smart to keep the popular program going — at least for a while.

“Clearly, this program has generated considerable store traffic in automobile dealerships, a renewed interest in automobile buying, and potentially increased employment in the short run.”